Alabama State Rep. Jack Williams, R-Vestavia, introduces bill April 16, 2013 to protect manufacturers from lawsuits filed by consumers who had used the generic equivalents of their products made by different companies

BIRMINGHAM, Alabama - A Jefferson County legislator says he has introduced a bill in the Alabama Legislature aimed at preventing brand-name manufacturers from being sued by consumers who use a generic version of their product made by a different company.

State Rep. Jack Williams, R-Vestavia, chairman of the House Commerce and Small Business Committee, announced in a press release today that he plans to get the bill - HB617 - through his committee and on a fast-track for approval.

"This bill would prohibit a product liability action for relief against the manufacturers of a product unless the manufacturer was the manufacturer of the specific product," the bill introduced Tuesday states.

Williams said he was sponsoring the bill to address a January decision by the Alabama Supreme Court that a brand name manufacturer - or innovator - can be held liable for injuries suffered by someone who used a generic equivalent of the product made by a different company.

Courts in most states have rejected "innovator liability," Williams stated.

The Alabama Supreme Court ruling came in a case involving a drug manufacturer. "But the whole concept of innovator liability goes well beyond pharmaceuticals," Williams said in an interview this afternoon.

Williams said he had been approached by some business groups that were concerned about the issue.

"This State Supreme Court ruling threatens Alabama's ability to compete with other states in recruiting manufacturers in the automobile industry, the aerospace industry, the pharmaceutical industry and just about any other you can imagine," Williams said. "When a company invents a product, it should not be liable if a third party replicates the product and is later sued by a consumer as a result."

Williams stated that the Alabama Supreme Court's ruling could lead to lawsuits being filed against a number of Alabama manufacturers, including in the automotive industry.

The Alabama Supreme Court ruling was in response to a question from the judge presiding over a federal lawsuit filed by an Alabama couple against the brand name manufacturers of an acid reflux drug.

Wyeth LLC, Pfizer Inc., and Schwarz Pharma, Inc., the brand name manufacturers of the drug Reglan, on Feb. 19 asked the Alabama Supreme Court to reconsider its January opinion.The supreme court has not ruled on that request.

The U.S. Chamber of Commerce, the Business Council of Alabama, and four other groups also filed court briefs supporting that request and warning of the potential for lawsuits against Alabama companies.

The Business Council of Alabama warned there could be consequences of the Alabama Supreme Court's ruling to the state's car manufacturing industry.

"For example, will Alabama's 'brand-name' car manufacturers face similar liability to consumers who will foreseeably use generic aftermarket parts to repair their cars?," the Business Council of Alabama argued in its brief. "If so, how will that impact 'brand-name' manufacturers decision whether to expand manufacturing facilities in Alabama or even whether to relocate to a state more respectful of traditional tort limitations? These are significant questions."

Lawyers representing the Alabama couple hailed the supreme court's ruling as a landmark decision, with brand-name makers of drugs being held accountable for understating the risks of the drug.

The issue mainly revolves around the warning labels on products. In the case of drugs, the makers of generic drugs are required by the U.S. Food and Drug Administration to have the same warning labels as the brand-name equivalent. The U.S. Supreme Court has ruled that generic manufacturers can't be sued based on the warning labels since they must be the same as the company that originally developed it.